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Non-residential building volume picks up

Non-residential building volume picks up

7 March 2018

The volume of activity for hospitals, storage, factories, and other non-residential building rose 4.1 percent in the December 2017 quarter, Stats NZ said today.

The increase excludes the effects of higher construction costs and typical seasonal patterns.

“While non-residential building activity lifted in the December 2017 quarter, residential activity eased slightly,” construction statistics manager Melissa McKenzie said. “Total building activity volume was up 1.4 percent.”

The volume of activity for both residential and non-residential building was at near record levels. For residential building activity, the volume fell 0.4 percent in the latest quarter, following a 4.1 percent rise in the September 2017 quarter.

In value terms, non-residential building activity was $7.4 billion in the year ended December 2017, up 1.8 percent on 2016.

“Work on factories and industrial buildings, and accommodation buildings helped boost non-residential activity in 2017,” Ms McKenzie said.

“In contrast, some of the biggest building categories, such as offices and shops, decreased compared with 2016.”

The non-residential building types with the greatest increases in the December 2017 year were:
• factories and industrial buildings – up $130 million (22 percent) to $733 million (with increases outside of the main centres, boosting regional activity)
• hotels, motels, boarding houses, and prisons (accommodation buildings) – up $110 million (23 percent) to $585 million, coinciding with record short-term travel in 2017 into New Zealand and record high occupancy for hotels in 2017
• social, cultural, and religious buildings – up $103 million (21 percent) to $602 million (mainly in Canterbury and Auckland).

The value of building work on accommodation buildings is likely to stay high into the near future, as the value of consents for tourism-related buildings surged in 2017.

Conferences, culture, and tourism boost consents has more detail.

Building plans put to work looks more at the relationship between building consents and value of building work put in place data.

Authorised by Liz MacPherson, Government Statistician, 7 March 2018.

For more information about these statistics:

• Visit Value of building work put in place: December 2017 quarter
• See CSV files for download


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